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Gartner

NYSE:IT
Snowflake Description

High growth potential with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IT
NYSE
$14B
Market Cap
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Last updated 2019/04/16 23:38
Company description

Gartner, Inc. operates as a research and advisory company. The last earnings update was 53 days ago. More info.

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IT Share Price and Events
7 Day Returns
1.4%
NYSE:IT
1.2%
US IT
0.4%
US Market
1 Year Returns
34.7%
NYSE:IT
22.6%
US IT
6.8%
US Market
IT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Gartner (IT) 1.4% 9.5% 23% 34.7% 78.3% 132.1%
US IT 1.2% 4.3% 19.7% 22.6% 79% 103.6%
US Market 0.4% 2.6% 11% 6.8% 38.1% 45.7%
1 Year Return vs Industry and Market
  • IT outperformed the IT industry which returned 22.6% over the past year.
  • IT outperformed the Market in United States of America which returned 6.8% over the past year.
Price Volatility
IT
Industry
5yr Volatility vs Market

IT Value

 Is Gartner undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Gartner to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Gartner.

NYSE:IT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:IT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.066 (1 + (1- 21%) (16.02%)) 		1.135
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.135 * 5.96%) 		9.49%

Discounted Cash Flow Calculation for NYSE:IT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Gartner is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:IT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.49%)
2019 439.00 Analyst x2 400.93
2020 550.50 Analyst x2 459.17
2021 641.67 Est @ 16.56% 488.81
2022 721.32 Est @ 12.41% 501.83
2023 789.90 Est @ 9.51% 501.89
2024 848.94 Est @ 7.47% 492.63
2025 900.31 Est @ 6.05% 477.14
2026 945.82 Est @ 5.05% 457.79
2027 987.03 Est @ 4.36% 436.32
2028 1,025.22 Est @ 3.87% 413.90
Present value of next 10 years cash flows $4,630.42
NYSE:IT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,025.22 × (1 + 2.73%) ÷ (9.49% – 2.73%) 		$15,569.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,569.64 ÷ (1 + 9.49%)10 		$6,285.72
NYSE:IT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,630.42 + $6,285.72 		$10,916.14
Equity Value per Share
(USD)		 = Total value / Shares Outstanding
= $10,916.14 / 89.71 		$121.68
NYSE:IT Discount to Share Price
Calculation Result
Value per share (USD) From above. $121.68
Current discount Discount to share price of $158.76
= -1 x ($158.76 - $121.68) / $121.68 		-30.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Gartner is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Gartner's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Gartner's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:IT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.35
NYSE:IT Share Price ** NYSE (2019-04-16) in USD $158.76
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 31.43x
United States of America Market PE Ratio Median Figure of 3,072 Publicly-Listed Companies 18.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Gartner.

NYSE:IT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:IT Share Price ÷ EPS (both in USD)

= 158.76 ÷ 1.35

 117.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gartner is overvalued based on earnings compared to the US IT industry average.
  • Gartner is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Gartner's expected growth come at a high price?
Raw Data
NYSE:IT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 117.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts		 42.1%per year
United States of America IT Industry PEG Ratio Median Figure of 65 Publicly-Listed IT Companies 2.6x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:IT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 117.75x ÷ 42.1%

 2.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gartner is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Gartner's assets?
Raw Data
NYSE:IT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $9.48
NYSE:IT Share Price * NYSE (2019-04-16) in USD $158.76
United States of America IT Industry PB Ratio Median Figure of 124 Publicly-Listed IT Companies 4.49x
United States of America Market PB Ratio Median Figure of 5,176 Publicly-Listed Companies 1.91x
NYSE:IT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:IT Share Price ÷ Book Value per Share (both in USD)

= 158.76 ÷ 9.48

 16.74x

* Primary Listing of Gartner.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gartner is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Gartner's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
    5. Gartner has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

IT Future Performance

 How is Gartner expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
42.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Gartner expected to grow at an attractive rate?
  • Gartner's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Gartner's earnings growth is expected to exceed the United States of America market average.
  • Gartner's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:IT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:IT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 42.1%
NYSE:IT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 9.2%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.9%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:IT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:IT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 5,284 3
2020-12-31 4,744 654 322 9
2019-12-31 4,265 612 257 9
NYSE:IT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,975 471 122
2018-09-30 3,901 448 146
2018-06-30 3,807 349 86
2018-03-31 3,650 287 -53
2017-12-31 3,311 255 3
2017-09-30 3,000 316 -38
2017-06-30 2,746 287 41
2017-03-31 2,512 323 185
2016-12-31 2,445 366 194
2016-09-30 2,385 362 193
2016-06-30 2,311 358 193
2016-03-31 2,249 353 192

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Gartner's earnings are expected to grow significantly at over 20% yearly.
  • Gartner's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:IT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Gartner Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:IT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 3.53 3.66 3.41 5.00
2019-12-31 2.82 2.95 2.65 5.00
NYSE:IT Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.35
2018-09-30 1.60
2018-06-30 0.94
2018-03-31 -0.58
2017-12-31 0.04
2017-09-30 -0.43
2017-06-30 0.49
2017-03-31 2.24
2016-12-31 2.34
2016-09-30 2.34
2016-06-30 2.33
2016-03-31 2.32

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Gartner is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
Show me more growth companies in the IT industry
X
Future performance checks
We assess Gartner's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Gartner has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

IT Past Performance

  How has Gartner performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Gartner's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Gartner's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Gartner's 1-year earnings growth exceeds its 5-year average (3634.6% vs -21.5%)
  • Gartner's earnings growth has exceeded the US IT industry average in the past year (3634.6% vs 12.7%).
Earnings and Revenue History
Gartner's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Gartner Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:IT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,975.45 122.46 1,884.14
2018-09-30 3,901.08 145.74 1,861.46
2018-06-30 3,807.50 85.81 1,835.08
2018-03-31 3,649.89 -52.74 1,782.51
2017-12-31 3,311.49 3.28 1,599.00
2017-09-30 3,000.20 -37.54 1,423.50
2017-06-30 2,746.18 41.12 1,272.23
2017-03-31 2,512.44 185.03 1,136.02
2016-12-31 2,444.54 193.58 1,089.18
2016-09-30 2,385.09 192.86 1,058.13
2016-06-30 2,311.20 192.74 1,024.58
2016-03-31 2,249.14 192.27 990.57
2015-12-31 2,163.06 175.64 962.68
2015-09-30 2,103.27 169.02 939.76
2015-06-30 2,074.04 172.50 920.43
2015-03-31 2,045.93 174.38 900.97
2014-12-31 2,021.44 183.77 876.07
2014-09-30 1,958.17 186.04 852.98
2014-06-30 1,897.93 190.39 817.51
2014-03-31 1,824.16 183.86 784.60
2013-12-31 1,784.21 182.80 760.46
2013-09-30 1,738.26 180.21 733.87
2013-06-30 1,701.96 173.39 717.21
2013-03-31 1,653.39 168.36 696.80
2012-12-31 1,615.81 165.90 678.84
2012-09-30 1,568.75 152.10 663.44
2012-06-30 1,540.13 151.19 647.02

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Gartner has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Gartner used its assets less efficiently than the US IT industry average last year based on Return on Assets.
  • Gartner's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Gartner's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Gartner has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

IT Health

 How is Gartner's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Gartner's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Gartner's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Gartner's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Gartner's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Gartner Company Filings, last reported 3 months ago.

NYSE:IT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 850.76 2,281.69 156.37
2018-09-30 941.55 2,170.76 211.00
2018-06-30 921.43 2,430.84 141.81
2018-03-31 987.57 2,975.79 189.98
2017-12-31 983.47 3,278.85 538.91
2017-09-30 863.41 3,349.84 630.02
2017-06-30 853.68 3,428.06 589.28
2017-03-31 102.82 1,635.33 1,227.89
2016-12-31 60.88 694.39 474.23
2016-09-30 -10.50 751.31 465.73
2016-06-30 -52.83 846.28 445.05
2016-03-31 -112.67 907.02 403.94
2015-12-31 -132.40 823.96 372.98
2015-09-30 -159.59 840.00 371.24
2015-06-30 -170.16 719.02 357.58
2015-03-31 -139.51 669.74 281.65
2014-12-31 161.17 407.90 365.30
2014-09-30 152.52 373.84 341.22
2014-06-30 197.51 379.87 317.93
2014-03-31 236.72 360.72 283.28
2013-12-31 361.32 211.51 423.99
2013-09-30 321.64 212.29 374.52
2013-06-30 328.69 212.73 333.36
2013-03-31 319.16 214.08 269.06
2012-12-31 306.67 215.02 299.85
2012-09-30 261.47 211.00 255.39
2012-06-30 214.99 200.09 150.53
  • Gartner's level of debt (268.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (59.2% vs 268.2% today).
  • Debt is well covered by operating cash flow (20.6%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Gartner's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Gartner has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

IT Dividends

 What is Gartner's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Gartner dividends. Estimated to be 0% next year.
If you bought $2,000 of Gartner shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Gartner's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Gartner's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:IT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:IT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Gartner has not reported any payouts.
  • Unable to verify if Gartner's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Gartner's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Gartner has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Gartner's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Gartner's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Gartner afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Gartner has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

IT Management

 What is the CEO of Gartner's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gene Hall
COMPENSATION $11,874,230
AGE 61
TENURE AS CEO 14.7 years
CEO Bio

Mr. Eugene A. Hall, also known as, Gene serves as Chief Executive Officer of Gartner Inc. since 2004. He is Chief Executive Officer of Gartner Consulting, Inc., a subsidiary of Gartner, Inc. Mr. Hall has been Chief Executive Officer of Gartner, Inc. since July 23, 2004 and served as its Head of Business Operations since September 28, 2004. Mr. Hall served for 6 years with Automatic Data Processing, Inc., where he was responsible for developing strategies to accelerate the growth of two major businesses and leading technology across ADP. Under his leadership the business achieved accelerated sales to new clients and achieved record client retention and quality scores. In this same role, he also led a 1600 person software development and IT Operations organization that introduced several new, high-growth products. He served as a senior partner with management consultant McKinsey & Company. He worked at McKinsey for 16 years and focused on developing business strategies for technology-based companies and other companies where technology plays a central role in their business. He has been a Director of Gartner, Inc. since August 2004. He serves as a Director of Gartner Inc., since 2004 and Gartner Consulting, Inc. He served as Director of McKinsey & Company. Mr. Hall holds a B.S. in Mechanical Engineering from the Massachusetts Institute of Technology (M.I.T.) and an M.B.A. from Harvard Business School.

CEO Compensation
  • Gene's compensation has been consistent with company performance over the past year.
  • Gene's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Gartner management team in years:

10.9
Average Tenure
51.5
Average Age
  • The average tenure for the Gartner management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Gene Hall

TITLE
CEO & Director
COMPENSATION
$12M
AGE
61
TENURE
14.7 yrs

Craig Safian

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
49
TENURE
4.8 yrs

David McVeigh

TITLE
Executive Vice President of Global Business Sales
COMPENSATION
$2M
AGE
51

Alwyn Dawkins

TITLE
Executive Vice President of Conferences
COMPENSATION
$2M
AGE
52
TENURE
10.9 yrs

Peter Genovese

TITLE
Senior Director of Sales Strategy & Operations

Mike Diliberto

TITLE
Executive VP & Chief Information Officer
AGE
52
TENURE
2.8 yrs

David Cohen

TITLE
Group Vice President of Investor Relations

Jules Kaufman

TITLE
Executive VP
AGE
60
TENURE
1.7 yrs

Robin Kranich

TITLE
Executive Vice President of Human Resources
AGE
47
TENURE
10.9 yrs

Ken Davis

TITLE
Executive Vice President of Products & Services
AGE
49
TENURE
12.7 yrs
Board of Directors Tenure

Average tenure and age of the Gartner board of directors in years:

12.5
Average Tenure
63
Average Age
  • The average tenure for the Gartner board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Jim Smith

TITLE
Chairman of the Board
COMPENSATION
$375K
AGE
78
TENURE
14.7 yrs

Gene Hall

TITLE
CEO & Director
COMPENSATION
$12M
AGE
61
TENURE
14.7 yrs

Anne Fuchs

TITLE
Independent Director
COMPENSATION
$292K
AGE
70
TENURE
19.8 yrs

Bill Grabe

TITLE
Independent Director
COMPENSATION
$277K
AGE
80
TENURE
26 yrs

Rich Bressler

TITLE
Independent Director
COMPENSATION
$290K
AGE
61
TENURE
13.2 yrs

Stephen Pagliuca

TITLE
Independent Director
COMPENSATION
$260K
AGE
63
TENURE
9.2 yrs

Karen Dykstra

TITLE
Independent Director
COMPENSATION
$275K
AGE
59
TENURE
11.8 yrs

Raul Cesan

TITLE
Independent Director
COMPENSATION
$270K
AGE
70
TENURE
7.2 yrs

Peter Bisson

TITLE
Independent Director
COMPENSATION
$264K
AGE
61
TENURE
2.7 yrs

Eileen Serra

TITLE
Independent Director
COMPENSATION
$127K
AGE
63
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • Gartner insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
18. Mar 19 Sell M. R. Thomas Individual 14. Mar 19 14. Mar 19 -8,259 $144.14 $-1,190,452
14. Mar 19 Sell M. R. Thomas Individual 12. Mar 19 12. Mar 19 -3,706 $145.13 $-537,852
13. Mar 19 Sell Robin Kranich Individual 11. Mar 19 11. Mar 19 -8,496 $143.00 $-1,214,928
12. Mar 19 Sell Craig Safian Individual 08. Mar 19 08. Mar 19 -3,635 $140.64 $-511,226
05. Mar 19 Sell Eugene Hall Individual 28. Feb 19 01. Mar 19 -90,935 $143.83 $-13,023,635
25. Feb 19 Sell Alwyn Dawkins Individual 21. Feb 19 21. Feb 19 -1,909 $142.01 $-271,097
29. Nov 18 Sell Robin Kranich Individual 28. Nov 18 28. Nov 18 -3,085 $149.24 $-460,405
26. Nov 18 Sell Craig Safian Individual 21. Nov 18 21. Nov 18 -1,000 $147.44 $-147,440
20. Nov 18 Sell Alwyn Dawkins Individual 16. Nov 18 16. Nov 18 -1,378 $147.20 $-202,842
04. Sep 18 Sell M. R. Thomas Individual 31. Aug 18 31. Aug 18 -1,400 $149.81 $-209,734
28. Aug 18 Sell Alwyn Dawkins Individual 24. Aug 18 28. Aug 18 -6,545 $148.32 $-961,368
14. Aug 18 Sell Alwyn Dawkins Individual 13. Aug 18 13. Aug 18 -366 $139.69 $-51,127
13. Aug 18 Sell Eugene Hall Individual 09. Aug 18 09. Aug 18 -38,995 $139.26 $-5,430,444
08. Aug 18 Sell Robin Kranich Individual 06. Aug 18 06. Aug 18 -4,000 $140.23 $-560,368
19. Jun 18 Sell Alwyn Dawkins Individual 15. Jun 18 15. Jun 18 -800 $138.00 $-110,400
11. Jun 18 Sell Karen Dykstra Individual 07. Jun 18 07. Jun 18 -1,800 $137.24 $-247,032
06. Jun 18 Sell M. R. Thomas Individual 04. Jun 18 04. Jun 18 -1,850 $135.63 $-250,916
17. May 18 Sell Peter Sondergaard Individual 15. May 18 15. May 18 -2,678 $134.79 $-360,968
17. May 18 Sell Alwyn Dawkins Individual 16. May 18 16. May 18 -1,500 $135.32 $-202,980
15. May 18 Sell Craig Safian Individual 11. May 18 11. May 18 -3,528 $134.61 $-474,904
X
Management checks
We assess Gartner's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Gartner has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

IT News

Simply Wall St News

What Is Gartner, Inc.'s (NYSE:IT) Share Price Doing?

saw a significant share price rise of over 20% in the past couple of months on the NYSE. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price … However, could the stock still be trading at a relatively cheap price?

Simply Wall St - –

Gartner, Inc. (NYSE:IT) Insiders Have Been Selling

So we'll take a look at whether insiders have been buying or selling shares in Gartner, Inc. … In the last twelve months, the biggest single sale by an insider was when CEO & Director Eugene Hall sold US$13m worth of shares at a price of US$144 per share. … It's not ideal to see that insiders have sold at around the current price

Simply Wall St - –

Is Gartner, Inc.'s (NYSE:IT) ROE Of 14% Impressive?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Gartner has a return on equity of 14% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - –

Is Gartner, Inc.'s (NYSE:IT) CEO Paid At A Competitive Rate?

Gene Hall became the CEO of Gartner, Inc. … This analysis aims first to contrast CEO compensation with other large companies. … How Does Gene Hall's Compensation Compare With Similar Sized Companies?

Simply Wall St - –

Is Now The Time To Look At Buying Gartner, Inc. (NYSE:IT)?

received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $160 at one point, and dropping to the lows of $123.06. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Gartner's current trading price of $123.06 reflective of the actual value of the?

Simply Wall St - –

What Should You Know About Gartner Inc's (NYSE:IT) Capital Returns?

and want a simplistic look at the return on Gartner Inc (NYSE:IT) stock. … As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide. … Thus, to understand how your money can grow by investing in Gartner, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St - –

Why Gartner Inc (NYSE:IT) May Not Be As Efficient As Its Industry

and want to learn about Return on Equity using a real-life example. … Gartner Inc’s (NYSE:IT) most recent return on equity was a substandard 9.31% relative to its industry performance of 15.11% over the past year. … Knowing these components could change your view on IT’s performance.

Simply Wall St - –

When Should You Buy Gartner Inc (NYSE:IT)?

As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, could the stock still be trading at a relatively cheap price. … Let’s examine Gartner’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St - –

Is It The Right Time To Buy Gartner Inc (NYSE:IT)?

The company's shares saw a decent share price growth in the teens level on the NYSE over the last few months. … This means that the opportunity to buy Gartner at a good price has disappeared! … Gartner’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St - –

What Investors Should Know About Gartner Inc's (IT) Financial Strength

NYSE:IT Historical Debt Nov 25th 17 A basic way to evaluate IT's debt management is to see whether the cash flow generated from the business is at a relatively high level compared to the debt capital invested. … IT’s recent operating cash flow was 0.09 times its debt within the past year. … With a high level of debt on its balance sheet, IT could still be in a financially strong position if its cash flow also stacked up.

Simply Wall St - –

IT Company Info

Description

Gartner, Inc. operates as a research and advisory company. It operates through three segments: Research, Conferences, and Consulting. The Research segment offers objective insights and advice on the priorities of various leaders in a range of functional areas of the enterprise through research and other reports, briefings, proprietary tools, access to analysts, peer networking services, and membership programs that enable clients to make better decisions; and practice and talent management research insights in various business functions, such as human resources, sales, legal, and finance. This segment delivers its research, primarily through a subscription-based digital media service. The Conferences segment offers business professionals in an organization the opportunity to learn, share, and network various events. The Consulting segment offers customized solutions to client needs through on-site and day-to-day support, as well as proprietary tools for measuring and improving IT performance. This segment provides solutions to CIOs, IT executives, and other professionals who are responsible for IT applications, enterprise architecture, go-to-market strategies, infrastructure and operations, program and portfolio management, and sourcing and vendor relationships; consulting services to professionals; and actionable solutions for IT cost optimization, technology modernization, and IT sourcing optimization initiatives. The company has operations in the United States, Canada, Europe, the Middle East, Africa, and internationally. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.

Details
Name: Gartner, Inc.
IT
Exchange: NYSE
Founded: 1979
$14,242,635,366
89,711,737
Website: http://www.gartner.com
Address: Gartner, Inc.
56 Top Gallant Road,
PO Box 10212,
Stamford,
Connecticut, 06902,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE IT Common Stock New York Stock Exchange US USD 05. Oct 1993
DB GGRA Common Stock Deutsche Boerse AG DE EUR 05. Oct 1993
LSE 0ITV Common Stock London Stock Exchange GB USD 05. Oct 1993
BRSE GGRA Common Stock Berne Stock Exchange CH CHF 05. Oct 1993
BMV IT * Common Stock Bolsa Mexicana de Valores MX MXN 05. Oct 1993
Number of employees
Current staff
Staff numbers
15,173
Gartner employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/16 23:38
End of day share price update: 2019/04/16 00:00
Last estimates confirmation: 2019/04/12
Last earnings filing: 2019/02/22
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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